14 Jun 2018
AP — Shares in ZTE Corp. fell 42 percent Tuesday in Hong Kong on their first trading day after the Chinese telecoms equipment maker agreed to pay a $1 billion penalty to the U.S. government and replace its top managers.
Shares resumed trading following a two-month suspension after Washington accused state-owned ZTE in April of reneging on a settlement of charges it violated export rules by selling U.S. technology to Iran and North Korea.
ZTE, China’s second-largest maker of telecoms equipment, agreed to replace its top executives and board of directors and to install a team of U.S. compliance experts.
In return, the White House rescinded a seven-year ban on purchases of U.S. components that had forced ZTE to suspend most operations.
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